Published by LIMRA, February 7, 2023
How workers’ need for lifetime-guaranteed income may drive more Americans to consider annuities
The goal of a successful retirement is to have enough guaranteed income to cover basic living expenses and not have to worry about running out of money for the rest of your life. According to recent LIMRA research, workers today do not feel that their households will receive enough lifetime-guaranteed income to cover basic living expenses throughout retirement.
LIMRA recently surveyed Americans ages 40 to 85 with at least $100,000 in household investable assets to explore their perceptions about retirement income and their confidence in their retirement security.
Among retirees surveyed, 70% say that their households receive enough income from various sources to cover the household’s basic living expenses. But for future retirees, only 44% expect to receive enough income from Social Security, traditional defined benefit (DB) pension plans, and/or lifetime-guaranteed annuities to cover their household’s basic living expenses. Instead, many will have to use their savings to pay these expenses.
LIMRA research has seen this drop in the proportion of pre-retirees who feel they will receive enough from all lifetime-guaranteed sources to cover all of their basic living expenses throughout retirement for three straight years and in four of the last five years ― going from a high of 58% in 2017 to 44% in 2022.
